Loans In One or Both Names

[Guest]

While my wife and I were engaged I bought a house in just my name. When we got married, I did not add her to the loan. It is still just in my name. A lawyer had informed me that if I did not put her name on the loan, that she would have the option to take it or leave it should something happen to me. She would not be stuck with the payments.

Since then we have bought 2 cars. Both in just my name. We paid them both off late last year. We have a credit union account that is just in my name. An AMEX just in my name, although she is an authorized user.

Our bank account and savings account is joint.

My question is, how does everyone apply for loans? Do you apply jointly? Separately and split them out? What do you do?

I am debating when we refinance our home whether to do it together or not. I can qualify solo so I figure why not. Also, we will need a new car in 3-6 months not sure how to apply for that either. Jointly or not.

We both make the same income, and we both have excellent credit.

What would you do?

[Radiance]

Biased answer since I am separated: since you both have excellent credit take turns and apply separately on each loan. When I separated it made things so much easier. Unfortunatelly one of HIS loans is also in my name because his credit was not enough at the time so I can only pray he pays on time until it is paid off...
I see no benefit on joint appications, it only benefits the creditor who will reduce its risk

[graceful]

When we purchased our car in 2000, we paid for it outright but for some reason, it was only registered in my name. And there it remains as is.

Our new house purchase and loan are in both names.

I don't think there is much difference EXCEPT in a case of divorce and "maybe" probate in the case of death. I would check into that just in case. Figure out what you both want to happen in those cases and go from there.

[creditcardfree]

Nearly 14 years of marriage and we apply for everything jointly.

With a house if I had the loan only in my name, I would want the deed in my name only also. If your wife is on the deed, but not the loan...you have a potential problem. I think this what the lawyer was indicating. She has all the benefit, but none of the risk.

[disneysteve]

Our cars are individually titled. Mine is in my name. Hers is in her name. I had a loan when I bought mine that I'm sure was just in my name (since her name isn't on the title). We bought hers for cash so it wasn't an issue.

Our house is jointly titled and both names are on the mortgage. When we had a HEL, that was also joint.

[Like2Plan]

While my wife and I were engaged I bought a house in just my name. When we got married, I did not add her to the loan. It is still just in my name. A lawyer had informed me that if I did not put her name on the loan, that she would have the option to take it or leave it should something happen to me. She would not be stuck with the payments. .

What would you do?

That is interesting advice. Of course, your loan is a mortgage that is tied to the house. If the mortgage is not satisfied and the payments are not made, the mortgage company can foreclose on the house.

Perhaps you could ask your attorney whether the mortgage company is required to re-write the mortgage to allow your wife to assume the mortgage in the event of your untimely death. After all, the original agreement and credit risk assessment was between you and the mortgage company. If not, would your estate have enough to cover the mortgage in full?

[Guest]

The way it was explained to me, she would have the option to take the house, and assume responsibility, or walk away with no consequences. Which to me, seems like an ideal situation to leave your wife in. Well take that back, the ideal situation would be that the house was paid for, but this is as close to ideal as it could be.

I guess my main question was, going forward how to divide the loans. Should I continue putting everything in my name? Should we split it up? Do it joint? etc.

[disneysteve]

The way it was explained to me, she would have the option to take the house, and assume responsibility, or walk away with no consequences.

What does your will say? Did you leave all of your assets to your wife?

Also, what does your state law say? In many states, all assets automatically pass to the surviving spouse upon death of the first spouse. If you die and she doesn't want the house, she would need to sell it.

[Guest]

I leave all my assets to my wife in the will.

You pose some good questions that I have no answer for. It was my understanding that she could take it, assume responsibility (sell it, pay for it, live there whatever) or walk away and the bank would take possession.

[disneysteve]

I leave all my assets to my wife in the will.

You pose some good questions that I have no answer for. It was my understanding that she could take it, assume responsibility (sell it, pay for it, live there whatever) or walk away and the bank would take possession.

I am not a lawyer so I'm just coming up with questions that I'm thinking of.

I believe a person can refuse an inheritance so I guess your wife could refuse to accept the house upon your death. I would definitely run that question past an attorney in your state (like the one who drew up your will).

Of course, she would then need to be prepared to move out and find another place to live. Is that really what you want her to have to do while dealing with the loss of her husband? I sure wouldn't want my wife to have to worry about finding a new home and packing and moving if I die.

Is there some reason you think your wife would not want the house? If you are worried that she wouldn't be able to keep making the payments, get life insurance. Term coverage is dirt cheap. It sure beats her having to pack up and move upon your death.

[wincrasher]

You wife needs to maintain a credit rating just in case something happens to you or if you get divorced. So you should get her on her own credit cards and included on joint loans like cars and mortgages if possible.

Even though her name isn't on the deed or on the mortgage, in most states, she is entitled to half the value in a divorce. Names on assets may have meaning for loans, but mean nothing if you divorce or bankrupt.

[PrincessPerky]

All loans are in his name, he has a job, and credit.

Some CCs I have authorization on, some I don't, none I use.

Bills I started putting in my name if they let me. That way I have some sort of credit rating.

I was told in NC, that assets upon death or divorce are join in a marriage no matter who's name is on the paper. So leaving me off gets us a better interest rate (house is the only loan we have-had car but paid off). But doesn't risk me losing anything should he die (we have life insurance to pay off, though no guarantee I would want to stay here).